Nonprofits want health reform, but they’re split on Medicare for All: Report

Salt Lake City, Utah – June 11, 2019 — Small nonprofits are eager for government action on health care, but they’re split over whether a “Medicare for All”-style policy is the right answer. Their biggest motivation, they say, is ensuring their employees have access to a quality health benefit.

These are key findings from the Nonprofits on Benefits: 2019 Report from PeopleKeep, the leader in personalized benefits for small businesses. Drawing on survey responses and other data from more than 100 nonprofits and religious organizations, Nonprofits on Benefits offers the first look at how the nonprofit sector thinks about health benefits and policy.

While nonprofits consider it important to offer health benefits, many struggle to do so. The report found that more than 80% of small nonprofits can’t afford group health insurance. Another 52% say their employees have diverse needs that make offering group health insurance difficult.

Many nonprofits are instead turning to the qualified small employer health reimbursement arrangement (QSEHRA), which allows them to reimburse employees tax-free for medical expenses. In fact, 93% of nonprofits using a QSEHRA say they’re very or extremely likely to recommend it to other nonprofits.

Still, nonprofits would like to see additional health benefits options. Sixty-eight percent of those surveyed said they wanted to see action from the federal government to expand options outside of group health.

When it comes to Medicare for All, nonprofits are less certain. One-third of survey respondents expressed support for the policy, but 26 percent said they were opposed.

Additional report findings include:

• The biggest challenges to offering health benefits among nonprofits were cost (81%), diverse employee needs (52%), time (35%), and unpredictable revenue streams (27%).
• Among nonprofits, arts organizations and social welfare groups were most supportive of Medicare for All (with 57% and 55% expressing support, respectively). Religious organizations were the least supportive, with only 15% approval.
• Nonprofits suggested more control over prescription drug cost and more HRA options as ways the government might improve health care. 

Download the full report or check out an infographic displaying top-level findings.

About PeopleKeep

PeopleKeep helps small businesses offer competitive benefits at a price they can afford. PeopleKeep personalized benefits automation software allows businesses to reimburse employees tax-free for medical expenses. Today more than 3,000 companies trust PeopleKeep to automate their benefits and keep employees happy.